Oroville-area school officials say Prop. 30 passage unexpected

OROVILLE — For school districts in the Oroville area, passage of Proposition 30 on Tuesday was a surprise that brought relief Wednesday, and some uncertainty.

The relief comes from schools dodging huge state funding cuts that would have been triggered in January had the tax measure failed.

Oroville Union High School District business director Susan Watts said the Proposition 30 win was a relief. "We'll be flat-funded, but the alternative meant we had to include trigger cuts into our budget."

The uncertainty is over how much of the estimated $6 billion tax revenue the schools will get.

Watts was crunching numbers Wednesday, but didn't have an estimate yet.

At the Thermalito Union School District, business director Darlene Waddle wasn't sure, but said if the state sticks with the budget guidelines adopted last June, the district may just over $500,000.

"We're waiting for the state to tell us how much from this proposition we're actually getting," she said. "We don't know."

If Proposition 30 had failed, districts stood to lose at least $441 per student in average daily attendance funding.

Waddle said schools expect to receive some funding on the revenue side from Proposition 30 in the current fiscal year, but most of it won't be realized until 2013-14.

She added that cash flow is another matter of concern. Along with 22 percent cuts since 2007-08, the state has been deferring payments to school districts.

Waddle said the state won't be giving cash to schools until next June.

That means TUSD will have to borrow. Waddle said they plan to issue a Tax Revenue Anticipation Note, or TRAN, in February in order to make it through June.

TUSD also is spending down its reserves to cover expenses.

Watts said OUHSD has been watching its cash flow and it isn't a problem for the district this year.

"There's more of a concern for 2013-14," she said.

Waddle added that what schools will get from Proposition 30 "depends on how the state sees fit."

Some of the funding will go toward law enforcement, fire and other needs.

"So it's divided," she said. "We just don't know how yet."

Waddle said it's too soon to be relieved about passage of Proposition 30.

"There's a little bit of relief in the sense we won't be cut anymore," she said. "We're still cut some this year, but future years are more secure."

"We just continue to be optimistic, but cautious. I think that's our new motto around here."

"Everybody was planning for the worst and hoping the best," Watts said. "It's a strange feeling; we're happy it passed, but school districts aren't getting more money; we're being held even."

Staff writer Barbara Arrigoni can be reached at 533-3136, barrigoni@orovillemr.com, or on Twitter @OMRBarbara.